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Why Choose Insurance Education Plan As Your Funding Vehicle?

Planning for a child’s college education should begin at an early age. Many parents take this issue very lightly as they do not foresee the potential of their children and therefore this education planning has been neglected. With the education loan available these days from financial institution and government study loan, parents tend to develop a wait and see attitude without considering the debts that their children will have to carry if any loan taken up in their college time. As a parent, we suppose to lay a positive foundation for children instead of putting them in the debt position right after their college.

There are many ways to raise the fund as mentioned in my earlier blog but why do we need to choose the Education funding plan that has insurance coverage. The reason is very simple because you will be fully protected while saving for your children future fund. Under this kind of fund raising method will give you the assurance that sending your children to college or university is secure no matter what happen to you. Furthermore, Insurance come with a special feature that it has the income benefit should the payor diagnosed with dread diseases. This benefit will allow the policy holder to enjoy receiving free yearly premium pay out until the maturity of the policy, which mean the account will continue to be in forced. Most insurance companies will have this features for their policyholders.

Compare to other way of saving or fund raising, the account of accumulating will stop if something happen to the contributor unless there is an immediate substitute contributor to that funding account. Choosing insurance education plan will be a secure way to raise the education fund and our children future education is guarantee.  

To Own An Asset Or To Own Liability?

I can always hear people are saying that they want to earn a lot of money to buy a house. How many really understand this statement? They will buy the house with minimum deposit and make themselves in debts with the bank.

Do you know  when you take up housing financing loan is actually causing you a lot of money for the house due to the high interest rate you signed in the loan agreement with bank? You will become the slave of the housing loan. If you are not in the position to service the loan then the house will be under repossession by the bank.

You are not the owner of the house and you are actually do not own this asset if you are still have outstanding loan with the bank. Many people like to say that they have bought a house, I think they should say mortgage a house instead.

In this new generation, many young couples are rushing to get a house with minimum down payment. They are unlikely to consider what if they face with financial difficulty one day. They actually make themselves into debt before even starting a family. 

Therefore, a proper planning should be in place. We want to own an assets and not liabilities. Buying any assets with financing help is not owned it but is a liability. You can avoid this if having proper planning. You can buy any house with minimum deposit and with financing help, but do you have any plan that to help you shorter your repayment period to save you thousand of money ? You have to work out one today.

You can invest your money in the share market, unit trust and insurance with investment elements account which can bring you with good return of income but you have to be wise in selecting lowest risk of investment with maximum benefits to meet your purpose of investing.

Remember, we want to own the house and make it become our asset and not letting other to make money out of our asset. Begin your proper planning today if you already in servicing your housing loan or you are planning to buy one. Work out a plan to achieve this and you can own your asset and not liability. 

How To Raise Children Education Fund In Smart Way?

Everything is on the rise and there is no exception to children education fee today.  Those parents who have college bound children will know it better because they have done the research and comparing colleges or universities tuition fees. The tuition fee will continue to rise in the coming years and therefore, parents today has to do a proper education planning at the early stage of their children. 

There are several ways to fund the education. The most commonly methods are as below:
1) To apply study loan from financial institution, government loan or colleges/universities financing scheme.
2) For those who scored excellent grade during school academic can apply for scholarship either to the Private organisation or to Government.
3) Saving in the bank account is the most traditional way. You can accumulate the saving in the saving account or Fixed Deposit account. Both will bring the interest to your account.
4) Saving in the Unit Trust can be another effective way to accumulate interest . It will show good sum of money over a long period of time.
5) Insurance Education Fund is also another excellent way to save because of the high return of cash value.

Parents are aware of all this methods but they might lack of the knowledge to select the best financial tools to help them raising the fund for their children in the education fund. Most of the methods are emphasizing on the saving rather than raising the fund effectively. Let ask a question to ourselves, what if we fall sick during the saving period and not able to generate income ? What if some thing happen to me ? What if I'm in financial difficulty ? Worse still , what if I die today ? The college or universities dreams of your children will shattered.

I always give consultation to parents especially young couple who has children below 5 years old to consider Education Plan from Insurance company. I'm not pushing for Insurance here but to educate all the parents how to raise your children fund in smart way. Parents should use insurance policy as their fund raising vehicle because insurance company provide the most benefits compare to other methods mention above. The return is also one of the highest in term of interest. The most beautiful part of Insurance Educational Plan can add in with Payor Income Rider which mean if anything happen to the payor of this education plan account like death, become permanent disabled or diagnosed with dread diseases, the insurance company will continue to save for your children until maturity of the agreement period. Children can still have the college fund to proceed with higher education no matter what happen to the parents.

When come to money related matters, we got to be smart dealing with it and listen to the advise from the expert to select the best method. All methods are good but we want the best one to help us in achieving our goals.

 

Don't Burden Your Children With Education Debt

Education fee has never stop increasing year after year. Parents are struggling to save some money and finding ways to fund their kids in their college or university. But it takes how long to save and can we cope up with inflation each year ? One of the easiest way is to get loan from private financial institution or applying government education financing scheme.When you talk about loan or financing , it is not a FREE stuff, it comes with interest rate and loan amount need to be paid back within certain time frame depending on the terms and conditions.

Can you imagine that your children after graduating will have this debt on their shoulder ? Are we not always teaching our kids not getting into debt but now most parents are putting debt onto their children by giving excuse that "we have no choice". Most of the graduates will not getting high salary when they first stepping into job market, they will have to take care of their day to day basic needs with the salary earned like food, lodging, support surviving parents, transportation, phone bill, car loan...etc. The monthly income is almost used up and how can they efficiently serving the study loan. This is one of the reason resulting a huge unpaid education loan in our country.

These graduates try to be disciplined and being responsible to pay the loan but due to the constrain in distributing their income, they have to make a choice to continue serving the loan or on hold temporary.
Can we parent do something to prevent this? Or we parent are being too selfish passing the burden to your children ?

Below are the commonly ways people raising fund.
1) Saving a portion of your income. ( Provided you are discipline enough )
2) Invest your money in share market or unit trust fund.
3) Start your own business.
4) Waiting for promotion or raise in salary
5) Working part time job to generate second income
6) Getting loan.

Above are the basic ways but will this bring good returns? What is the risk involved ? Do I have the experience ? Will I be healthy and safe all the time ? We can't predict accurately.

In your Financial Planning, never forget that Life Insurance playing a very important role, whether you like it or not you can't exclude it. In this case, Education policy is very important because it will secure your children education fund at the age of 18 to 25. You can withdraw during this time or upon maturity. You can use this fund to further you children education without getting any loan or you may use it to serving the loan later, it is all up to you. The most important thing is your children will not be burdened by the study loan anymore.

Education policy come with many other good benefits as this policy is one of the insurance products in the market. Some of the insurance policy will come with the feature if the payor of this policy diagnosed with critical illness, death and total permanent disability, this policy will still keep in force till maturity without paying any premium, it's all covered by the policy.

Plan today while your children are young unless you have better funding way. Do not let your children to be sued by the financial institution one day. Spend a little of your time to learn that this little thing can really give you "Peace of Mind ".



 
 

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Estate Planning and Wealth Succession

Many of us do not know that we have to pay for the Estate Tax upon death of an individual, this has no exclusion in Malaysia. You can avoid paying high tax if you have your estate planning set up today. You may be missing a piece in your financial planning.

Estate planning is necessary because it ensures that your heirs can receive your inheritance. Start to plan your wealth succession goal today, I can help you and assist you in developing an estate plan according to your wishes.

Review the checklist below and then call me directly. Free Consultation....Allow me to talk to you today.